When might an organization use a fiscal sponsor? What types of organizations finds fiscal sponsors most useful?
A new organization or group (of organizations or individuals) that is not formally incorporated with 501(c)(3) status and groups who only intend to operate for a limited period of time can benefit from fiscal sponsorship, because they do not have to first establish a nonprofit corporation. If a group is a coalition of several groups, even a group of 501(c)(3)organizations working together on a common issue, a fiscal sponsor may be seen as neutral territory for accepting funds. If a group is committed to its mission, but has no interest or experience in managing all the administrative functions of a business, a fiscal sponsor could be a good option.
